Can farmers benefit if the supply and demand of agricultural products are moderately tight?
According to some media reports, at the China Rural Development High-level Forum, which ended on July 31, Zhang Tianzuo, Department of Industrial policies and regulations of the Ministry of Agriculture, said that at present, the prices of many agricultural products in China do not fully reflect their value, and agricultural costs have risen substantially. And the efficiency of farming is declining day by day. As a result, cheap agricultural products are wasted by consumers and producers overuse chemical fertilizers. He proposed that the supply and demand of agricultural products should be moderately tight in policy.
"in terms of policy, we should ensure that the supply and demand of agricultural products is moderately tight." I don't know whether the reporter who first reported it is accurate. If this is the case, how to guarantee the policy of the Ministry of Agriculture is a big problem. But more importantly, will the above problems be solved simply by affecting supply and demand to ensure agricultural prices? The problem now is that no matter how high the price is, the proportion of farmers is always very small. Tight supply and demand keep the prices of agricultural products high, but farmers can only get a small piece of the pie from the rising point. Is this what the Department of Agriculture wants to achieve? With this small piece of soup, can the increase of farmers' income be realized? If farmers do not increase their income significantly, will there be a real driving force for China's agricultural modernization?
As Director Zhang said, the prices of many agricultural products do not fully reflect the scarcity of agricultural production resources and the value of labor costs. The costs of agricultural inputs, labor and land rent have risen substantially, while the benefits of farming are declining day by day. This leads to the waste of agricultural products and the destructive use of agricultural resources. However, it should be noted that in this case, most of the agricultural profits are earned by agricultural materials, technology and other service providers, while farmers as labor providers and land contract rights holders can only get a few of them. Therefore, farmers as tillers will overuse chemical fertilizers and pesticides and blindly pursue crop yield per unit area, resulting in agricultural non-point source pollution and environmental overdraft, and even the younger generation of farmers who cannot enter the city are unwilling to return to their hometown. How can the solution to these problems be to "create" a moderately tight supply and demand pattern through policies without changing the structural problem that farmers' share of agricultural profits is too low? Moderate tight supply and demand can only raise the prices of agricultural products a little more, but it cannot change the key fact that farmers get too low a proportion of agricultural profits.
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